The advantage of nanocomposites over conventional composites is that their mechanical, electrical, thermal, barrier and chemical properties such as increased tensile strength, improved heat deflection temperature, flame retardancy etc.
The market for polymer nanocomposites in terms of value is expected to reach above US$5100 mln by 2020, growing at a significant CAGR from 2014 to 2019, as per Markets and Markets. Asia-Pacific region dominated this market in terms of values in 2013 and it is expected to grow at a higher CAGR, from 2014 to 2020, driven by its large packaging industry and increasing automotive and aerospace industry in the region. The electrical & electronics market in Eastern Asian market also help propel the polymer nanocomposites application market. Asia-Pacific is the prime consumer of polymer nanocomposites globally followed by Europe. Europe and Asia-Pacific together accounted for more than 60% of this market in terms of value in 2013. APAC is expected to grow at a highest CAGR and secure its leading market position by 2020, with developing new application areas in electrical & electronics and automotive market. In Europe the use of polymer nanocomposites continues to increase in automotive industries to replace the other conventional composites that reduces the weight of vehicles and increases the mileage. Major growth in the Asia-Pacific region is expected from the growing packaging, automotive and electronics, semiconductor application. The polymer nanocomposites market in Asia-Pacific is growing fast as the application industries such as packaging, automotive, electronics & semiconductor, aerospace & defense and coatings are expected to register a significant growth rate in next five years. Presence of emerging economies such as India and China are helping the market to grow in the region. The growing packaging, automotive, and electronics and semiconductor in these emerging countries helped the market to grow at a higher rate. Agreement for technology use and new product launch were the key strategies adopted by industry players in order to maintain growth in the market. Nanocomposites have wide industrial applications and new product launches are paving the way for fulfilling the ever changing demand for new applications with better physical and mechanical properties. As a result of this, a diverse application base is developing. Market players are focusing on signing new agreements with researchers, institutes & universities and launching new and innovative materials in both existing and emerging markets that can meet the growing demand from application industries. 

The global polymer nanocomposites market is predicted to register CAGR of more than 24% until 2019, as per Research and Markets. Industrialization and infrastructure development have led to an increase in the consumption of polymer nanocomposites for various specialized products. The market is witnessing the introduction of innovative bio-based nanocomposites that are expected to contribute to its sustainability. However, the market growth is likely to be restricted by factors such as high R&D cost for vendors and the high deployment costs for end-users. APAC accounted for the largest share of the global polymer nanocomposites market due to widespread adoption in industrial sectors such as automotive, packaging, electronics & semiconductor, aerospace, defense, and coatings. The region is witnessing a surge in industrialization and infrastructure development, and it is likely to propel the polymer nanocomposites market in the APAC region. The presence of developing economies, such as China and India poses a key market opportunity for the vendors in this market.
In terms of revenue, the clay-based nanocomposites segment accounted for a major share of the global polymer nanocomposites market in 2014. The latest trend in this segment is to fill the polymer between individual clay sheets or to disperse the clay sheets into the polymeric matrix. In the future, the use of hybrid materials is expected to provide higher thermal stability and barrier properties, less shrinkage, and improved resistance to solvents, scratches, and fire. Market segmentation of the global polymer nanocomposites market by application is as follows:
- Medical and healthcare
- Cosmetics
- Protective clothing and material
- Filter media
- Optical application
- Electrical conductors

The food packaging industry is the second largest consumer of polymer nanocomposites. The high barrier properties of polymer nanocomposites enhance the shelf-life of packaged food items. It is used in the packaging industry for making wrapping films and beverage containers. APAC accounted for the largest share of the global polymer nanocomposites market due to widespread adoption in industrial sectors such as automotive, packaging, electronics & semiconductor, aerospace, defense, and coatings. The region is witnessing a surge in industrialization and infrastructure development, and it is likely to propel the polymer nanocomposites market in the APAC region. Industrialization and infrastructure development have led to an increase in the consumption of polymer nanocomposites for various specialized products. For instance, Bayer has just developed a new grade of plastic films for food packaging, made from nylon-6 exfoliated nanocomposites. The presence of developing economies, such as China and India poses a key market opportunity for the vendors in this market. In spite of their high cost, the use of polymer nanocomposites has gained significant market traction in industries such as automobiles, where mechanical properties, low weight, and the ability to withstand high loads are major factors.
Technavio’s market research analysts predict the global polymer nanocomposites market to grow at a CAGR of more than 24% until 2019. The market is witnessing the introduction of innovative bio-based nanocomposites that are expected to contribute to its sustainability. However, the market growth is likely to be restricted by factors such as the high R&D cost for vendors and the high deployment costs for end-users.

Polymer nanocomposite market is expected to witness substantial growth owing to growth in end-use applications including aerospace engineering, automotive industry, construction, renewable power generation, military and food. Automotive industry is expected to be a key driver due to rising demand of light weight automotive parts and high strength and light weight properties resulting in superior performance and reduced carbon emissions, as per Grand View Research. In addition, stringent government regulations related to automotive emission standards is expected to augment the market over the forecast period. Furthermore, growing awareness regarding automotive safety among consumers is expected to propel market growth. Global acceptance of polymer nanocomposites in semiconductor manufacturing owing to its superior characteristics including compactness, light weight structure, and electrical conductivity is expected to propel the market over next seven years. Polymer nanocomposite contains nanoparticles or nanofillers dispersed in polymer matrix. Polymer nanocomposite market is segmented based on product type including carbon nanotube, nanofiber, nanoclay and inorganic particle reinforced composites. Furthermore, the market is segmented based on end-use including packaging, automotive, electronics & semiconductor, food & beverage, aerospace & defense, energy, coatings and other industrial applications. Automotive market accounts for largest market share among polymer nanocomposites owing to its widespread use in manufacturing of automotive parts such as power train, suspension and braking systems, exhaust systems and catalytic converters, lubrication, tires and body parts. Enhanced mechanical, thermal barrier, electrical chemical properties of polymer nanocomposites including increased tensile strength, heat deflection temperature provides an edge over conventional nanocomposites. Food & beverage contributed a significant share due to increasing use in food packaging material as well as conservation of flavor in drinks and beverages. Defense application includes use of polymer nanocomposites in the manufacturing of electrically conductive fabrics, sensors, electromagnetic shielding, microwave absorption, ballistic protection, fire retardation and corrosion protection. Aerospace industry also contributed a significant share to polymer nanocomposite application owing to increased use in manufacturing of laminates, sandwich structures, anti-lightening and anti-radar protectors. Bio medical application of polymer nanocomposites includes biological imaging, cell tracking, magnetic bio separation, nanomedicine. In addition, various chemical compositions of natural and synthetic biodegradable polymers with organic or inorganic fillers are used in applications including tissue engineering and bone reconstruction. Renewable power generation application of polymer nanocomposites includes use of carbon nanotubes (CNT) tiles for power generation and CNT conductors for reducing transmission losses. However, high processing cost required for polymer nanocomposites production is expected to pose a major challenge for market growth over the forecast period. In addition, water resistance of polymer nanocomposite in wet environmental condition, degradation rates under various conditions, change in mechanical properties during storage, potential for microbial growth and release of harmful compounds into packaged food products is expected to pose a major challenge for market growth over the forecast period.
Asia Pacific accounted for largest market share for poly nanocomposite application owing to widespread use in various industries including packaging, automotive, electronics & semiconductor, aerospace, defense and coatings. Presence of emerging economies including India and China is helping the polymer nanocomposites market to grow in the region. Growing electrical and electronics market in South East Asia particularly in South Korea, Japan and China is expected to boost the poly nanocomposite market over the forecast period. European market accounted for second largest market share owing to increasing demand in automotive industries to replace the other conventional composites that reduces the weight of vehicles and increases efficiency. In addition, packaging industry is expected to boost the market in the region owing to its superior material and preservation characteristics. Middle East polymer nanocomposites market is expected to witness a significant growth owing to increasing use in packaging industry including food & beverages packaging over the forecast period. Africa is expected to grow at a significant rate owing to rising use of poly nanocomposites in coatings industry particularly in Nigeria and South Africa. Furthermore, growing infrastructure in the region is expected to propel market growth. Major players in the poly nanocomposite market include 3D System, Foster Corporation, Industrial Nanotech, Hybrid Plastics Inc., Inframat Corporation, InMat Inc., Nanocor Incorporated, Crown Plastics Co., Inc., AVEKA, Inc., Nanotech Industrial, SiM Composites, NanoMate Fastener, Nanolab, Inc., Noble Polymers LLC, Grand Rapids and Natural Nano, Inc.
The global nanocomposites market size is expected to reach US$7.48 bln by by 2022, according to a new report by Grand View Research, Inc. Growing demand for nanocomposites in the automobile industry, increased application of nanocomposites in building and construction, high volume consumption in electronics and semiconductors are some of the major factors that have been driving the market. However, the high cost of materials and technology to manufacture them along with the environmental impact of certain materials used in nanocomposites manufacturing are holding back the market. The nanocomposites market uses materials such as metals and metallic nanoparticles, polymers, nano-sized clay particles, carbon derivatives such as carbon nanotubes and graphene and other nanoparticles. These materials can be sourced from raw material manufacturers in all the regions globally. Major raw material manufacturers have their manufacturing bases in Europe and North America and usually distribute their materials through local suppliers in various regions around the world.
Further key findings from the report suggest:
* Metal/Metal oxides demand was 17.6 kilo tons in 2014. Metal/metal oxides are extensively used in manufacturing electronic parts and semiconductors. Metal oxides exhibit superior electrical conductivity and is being used in the preparation of pseudo capacitive electrochemical supercapacitors. Metal oxides includes the use of manganese, titanium, tantalum and vanadium oxides in the manufacturing of electronic parts owing to high durability and its ability to withstand high temperature.
* Ceramics accounted for 13% of the global market volume in 2014. Ceramic nanocomposites exhibit improved hardness, strength, durability and as compared to its counterparts. Ceramic nanocomposites provide superior thermal resistance and are used extensively in aerospace application. Furthermore, it is used in a variety of application due to its characteristics including flame retardancy, high shock resistance, and improved magnetic and optical properties.
* Aviation is expected to witness significant growth, growing at a CAGR of 24.2% from 2015 to 2022. Nanocomposites are used in the aviation industry in manufacturing flame retardant panels and high performance components. In addition, it provides structural strength to the existing panels which is expected to have a positive impact towards market growth. Furthermore, nanocomposites easily blend with plastic and metal and provide added strength to panels.
* European demand for nanocomposites was 68.2 kilo tons, growing at a CAGR of 23.3% from 2015 to 2022. Europe is characterized by the growing demand for nanocomposites in automotive and aviation a-applications. Growing demand for these products owing to their lightweight and superior durability is expected to increase demand over the forecast period. Furthermore, these products are being increasingly used in the manufacturing of wind turbines and solar panels. In terms of product, nanoclay is expected to witness fastest growth as compared to its counterparts.